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Question3 (8marks) SupposeyouareaFXtraderatHSBC.AclientcallsforaGBPquote.Youquote1.3625/1.3648.Clientbuys GBP200,000. (2marks)Atwhatrateisthedealdone? (2mark)Whatisyourposition(longorshort)inGBP(howmuch)? (2mark)Whatisyourposition(longorshort) inUSD(howmuch)? (2marks)Suppose30minutes after theclient'sdealwasdone,theGBPexchangeratesurged350pips.Whatistheprofitor loss status(andhowmuch)ofyourposition? Question4 (8marks) ContinuefromQuestion3above. Supposeattheendofthedayyoufindanotherbankquotingthe GBP/USDat1.3760/1.3765. (2marks)IstheGBPhigher/lower,stronger/weakeragainst USD? (2marks) Whattrade(buyor sellwhat)wouldyoudotocloseyouropenposition? (4marks)Whatis yourprofit/loss

Question3(8marks)

SupposeyouareaFXtraderatHSBC.AclientcallsforaGBPquote.Youquote1.3625/1.3648.Clientbuys GBP200,000.

  1. (2marks)Atwhatrateisthedealdone?
  2. (2mark)Whatisyourposition(longorshort)inGBP(howmuch)?
  3. (2mark)Whatisyourposition(longorshort) inUSD(howmuch)?
  4. (2marks)Suppose30minutes after theclient'sdealwasdone,theGBPexchangeratesurged350pips.Whatistheprofitor loss status(andhowmuch)ofyourposition?

Question4(8marks)

ContinuefromQuestion3above. Supposeattheendofthedayyoufindanotherbankquotingthe GBP/USDat1.3760/1.3765.

  1. (2marks)IstheGBPhigher/lower,stronger/weakeragainst USD?
  2. (2marks) Whattrade(buyor sellwhat)wouldyoudotocloseyouropenposition?
  3. (4marks)Whatis yourprofit/loss intermsofGBPandintermsofUSD?

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